inheritance tax

American  

noun

1. a tax levied on the right of an heir to receive a decedent's property, the rate being a percentage of the value of the property.

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inheritance tax British  

noun

1. (in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death

2. (in the US) a state tax imposed on an inheritance according to its size and the relationship of the beneficiary to the deceased

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Etymology

Origin of inheritance tax

First recorded in 1835–45

Example Sentences

Not only does Florida not have a state income tax, it doesn’t have an estate tax or an inheritance tax.

From Barron's • Apr. 20, 2026

An inheritance tax is paid by the recipient, and the amount typically depends on the heir’s relationship to the deceased.

From MarketWatch • Feb. 26, 2026

The good news: many states exempt children from inheritance tax.

From MarketWatch • Feb. 21, 2026

There will be no more changes to already watered down plans to raise farm inheritance tax, the government has said.

From BBC • Jan. 8, 2026

We will have national woman suffrage, national prohibition, continuing inheritance tax, continuing income tax, national life insurance, an increasing grip upon the railroads, their finances and their operation as well as their rates.

From Letters of Franklin K. Lane by Wall, Louise Herrick

Related Words

• death tax
• estate tax